A federal appeals court ruled Monday that Napster Inc., the popular Internet-based music service, can no longer give away copyrighted material.

“We have examined the papers submitted in support of and in response to the injunction application and it appears that Napster has designed and operates a system which permits the transmission and retention of sound recordings employing digital technology,” according to the official ruling by the 9th U.S. Circuit Court of appeals.

The ruling concludes a suit against Napster by a variety of plaintiffs that include recording industry giants Atlantic Recording Corporation and Sony Music Entertainment Inc.

“This is a clear victory,” said Hillary Rosen, president and CEO of the Recording Industry Association of America at a press conference. “The court of appeals found that the injunction is not only warranted, but required. And it ruled in favor on every legal issue presented.”

Others in the recording industry have voiced their support for Napster, including artists Dave Matthews of the Dave Matthews Band, Fred Durst of Limp Bizkit and U2 guitarist The Edge.

“Napster: It is the future, in my opinion. That is the way music is going to be communicated around the world,” Matthews told Billboard.com.

Students at Sacramento State were also less than enthusiastic about the courts decision.”I think [Napster] is an exercise in the first amendment,” said Nwaoha Lumumba, a Computer Science major at Sac State who uses the service daily.

Lumumba said that Napster also gives its users the ability to experience a wide variety of music that they would not have otherwise been exposed to. He added that this type of exposure should actually help the recording industry.

The court?s decision will only make his search for online music more difficult, he said.”I will have to seek out another service,” Lumumba said.

Marlon Araujo, also a Computer Science major at Sac State said that most users will find other services.

“To me, online music is not going to go away, people will just look elsewhere,” Araujo said.

The Napster company, which allows users to trade and give away digital music, will be allowed to stay fully operational until the U.S. District Court Judge Marilyn Hall can submit a revised injunction, according to the U.S. Circuit Court ruling.